Advantages of using a Currency Exchange company when sending money abroad
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When sending money overseas or bringing funds back to the UK it is worth considering using a currency exchange company for the following reasons:
- They usually offer a better exchange rate than the banks. Whether you are looking to transfer £2,000 or £200,000 there could be a significant difference between transferring directly from a bank or via a currencies exchange company. There are many companies offering this service and it pays to shop around for the best deals from providers.
- Will my money be safe? When selecting a currency exchange company check that they are regulated by the Financial Conduct Authority (FCA) and the Electronic Money Institution (EMI). It is important to check that when you transfer funds via a currency exchange company that they are ring fenced and placed in a segregated account in order to ensure they are protected.
- Will these companies charge me fees? Banks often charge fees when sending money abroad however a currency exchange company should not charge any fee or commission for providing their services.
- Why are the exchange rates better than the banks? The exchange rate that you see on the news is the interbank rate which is not available to individuals or companies. This allows banks to buy and sell currency at wholesale rates. Currency exchange companies can also buy at these rates and pass the savings onto customers.
- How can an exchange rate be confirmed when the market is fluctuating? Currency exchange companies tend to have a more specialist knowledge of the currency markets than banks. They often allow you to agree a rate and at that point it is fixed notwithstanding further fluctuations in the markets. They normally allow you to set rate alerts in order to advise you on favourable exchange rates in order that you can make a transfer of funds at a favourable time.
Finally, any reputable currency exchange company will also be required to carry out anti money laundering checks on potential clients as applies to other regulated financial organisations.